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Tata Trusts Chairman Noel N Tata, Tata Trusts trustee Darius J Khambata and former HDFC Chairman Deepak Parekh informally met at Taj Wellington Mews Residences in Mumbai to discuss the succession process at Tata Sons following N Chandrasekaran's decision to step down as chairman, an anonymous source familiar with the matter said.
The meeting held on Wednesday evening comes after Chandrasekaran decided not to seek another term as Tata Sons chairman. He is set to remain in office until February 20, 2027, when his current term ends, with the focus now shifting to identifying his successor and ensuring a smooth transition at the group's holding company. Chandrasekaran has headed Tata Sons since 2017, after previously serving as CEO and managing director of Tata Consultancy Services. His exit has triggered discussions over the group's future leadership structure, with the Tata Trusts playing a significant role as major shareholders of Tata Sons. In a related development, the adjournment of the Tata Sons Annual General Meeting is likely to delay the dividend payable to the two principal Tata Trusts. The Tata Sons AGM, scheduled for August 18, was adjourned after the company could not meet the required quorum. The meeting was scheduled to consider, among other matters, the company's financial statements and declaration of dividend. The adjournment is likely to delay the receipt of around Rs 2,900 crore in dividend attributable to the Sir Ratan Tata Trust (SRTT) and Sir Dorabji Tata Trust (SDTT). The financial impact of the delay could be significant. At an assumed annual return of 7 per cent, the Rs 2,900 crore amount represents around Rs 55.6 lakh in potential investment income for every day it remains unavailable. A 60-day delay would translate into around Rs 33.4 crore in potential investment income, while every additional week could mean another roughly Rs 3.9 crore in foregone returns. Tata Sons has not yet fixed the date for the adjourned AGM. An insider source said continuing delay is likely to increase the financial impact on the Trusts as the dividend amount remains unavailable to them. The delay has also raised questions over whether the Trusts have taken all reasonable and legally permissible steps to protect their financial and shareholder interests. An insider source said questions are being raised over whether independent legal advice has been obtained and whether urgent legal remedies or interim relief have been considered. The issue is significant given that the funds are meant for charitable purposes. At an assumed 7 per cent annual return, every additional day of delay represents around Rs 55.6 lakh in potential investment income while a week-long delay could mean around Rs 3.9 crore in foregone returns. (ANI)
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